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Publication Type
Journal Article
UWI Author(s)
Author, Analytic
Barclay, Lou Anne
Author Affiliation, Ana.
Department of Management Studies
Article Title
Foreign direct investment- facilitated development: The case of the natural gas industry of Trinidad and Tobago
Medium Designator
n/a
Connective Phrase
n/a
Journal Title
Oxford development studies
Translated Title
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Reprint Status
n/a
Date of Publication
2004
Volume ID
32
Issue ID
4
Page(s)
485
Language
n/a
Connective Phrase
n/a
Location/URL
n/a
ISSN
1360-0818
Notes
n/a
Abstract
Since the last decade, governments in less-developed countries have increasingly viewed foreign direct investment(FDI) as a catalyst for ecenomic growth and transformation. The early literature argues that FDI-facilitated development occurs when a less-developed country assimilates, adapts and diffuses the positive externalities arising from the interaction of the multinational enterprise's (MNE) ownership advantage with its locational attributes. This paper, however, posits that FDI- facilitated development is not an effortless process. It occurs only when host developing - country governments implement intervention policies that are aimed at increasing indigenous technological capabilties. These polilicies enhance the adsorbtive capacity of host countries, allowing them to capture the spillovers arising from the MNE activities. The paper explores this for Trinidad and Tobago, a recipient of substantial FDI inflows in its natural gas industry for the alst decade. It shows that FDI- facilitated development only occurs when governments in less- developed countries pursue credible intervention policies.....
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